Megan McArdle (or, as she likes to be called, McStupid), has decided to attack social security,, which is rather a mistake as her manipulations are easily refuted.
Every since the early eighties, when the Greenspan commission kicked the can down the road with a combination of tax increases and later retirement ages, analysts have been awaiting the day when the system would finally go into deficit. That date has been sliding around between 2016 and 2020 for some years now, but the suspense is finally over: the system is going into deficit this year.
Not doing a bit of research, I remember this was known and planned for.
Now, we all know that this week, McArdle said one of the stupidest things a grown human can say. ("Tyranny of the Majority") My friends, this week she tops herself. She's become quite the Jonah Goldberg.
This is the canary in the coal mine; if Social Security's finances are in trouble, Medicare's will also be looking worse. While I was at the Kauffman Foundation's economics blogger forum last Friday, a show of hands indicated that about 80% of the people there thought America would have a serious fiscal crisis in the next two decades. This is how it starts--not with a bang, but with a moderate decline in revenues.
I'll have to read a lot about Social Security to respond, but if she's going to operate on this level of clumsy misdirection and feeble lying, it'll be fun.